Outlook
- ATS expects Q2 revenue between C$660 mln and C$700 mln
- Company expects recurring revenues to be 25%-35% of total on a trailing-twelve-month basis
- ATS targets annual cost reductions of C$20 mln in first phase of Fixed Cost Transformation Program
Result drivers
- Lower construction contracts - Co said revenue decline was mainly due to lower order backlog entering the period, impacting construction contract revenues
- Timing delays - Co cited timing variability in anticipated customer awards, particularly in life sciences, as affecting revenue and backlog
- Restructuring costs - Co incurred restructuring and reorganization expenses, including transportation and services divisions, which impacted profitability
Q1 revenue and profit
- Canada automation solutions provider's Q1 revenue declined 5.8% yr/yr, missing analyst expectations
- Company posted net loss of C$0.3 mln, compared with net income a year ago
- ATS announced an 18-month Fixed Cost Transformation Program to improve profitability, starting with European facility consolidation
Key details and analyst coverage
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